Romanian power generators Hidroelectrica and Nuclearelectrica suffer from severe drought

Both Hidroelectrica and Nuclearelectrica are feeling the impact of a drought that has lowered water levels in major rivers, especially the Danube. Hidroelectrica’s adjusted net profit forecast for the year was reduced to RON 3 billion, 16% below its original budget, reflecting a 4% decline in revenue and a 4% rise in expenses. Nuclearelectrica has suspended production at the Cernavodă nuclear plant for more than a month because of the same low water conditions.

The utility’s share price dropped 9.2% over the last month and 16.3% over six months, though it remains up 18.5% year-on-year. The prolonged shutdown forced independent supplier Getica 95 to file for insolvency after it could not obtain contracted electricity and had to purchase power on the day-ahead market at prices that can exceed RON 1,500 per MWh during peak hours.